In this justification report, negotiations outcomes between Management and Union Representatives of Maritime Solutions Ltd (MSL) will be discussed. The negotiations took place on the 26th of November 2014 soon after the employees of the company had threatened to go on strike. The skilled workers in MSL demanded a 60 pence pay rise increase per hour and an extension of the paid holiday period from 4 weeks to 5 weeks for those with 10 years' service or greater. The GOU representative and the shop steward were representing the interests of skilled workers to two service managers – the General Manager and the Human Resources Manager. At the end of the negotiation session, both parties reached an agreement. The negotiation steps will be explained and justified in this report. The agreement outcomes can be of interest, in particular, to the employees of MSL as they will be affected by the Managers' and Union Representatives' decisions.
The Union was requesting a 60 pence per hour increase in the wages of which basic rate was £12.70 per hour, therefore, £13.30 (a 4.7% increase) per hour wage for the employees, which would be at a value of £355,680, costing the company £7,884,240 in total. The benefits of accepting the proposal are that the employees will feel fairly paid, valued, satisfied and all possibilities of a strike will be avoided, the employees will work more effectively and hence the company will be more productive, and there will be a very low rate of turnover as the employees will be satisfied with their wages and working conditions. .
The negotiation session began at 13:10, with participants thanking each other for the opportunity to discuss the company's issues. Both managers and the Union representatives expressed their willingness to reach an agreement to avoid a strike action. The shop steward then explained the current company situation, in particular, the risk of a strike action.